Q4) Read the case study below before you answer the question. You can highlight any work on the exam paper. Johnny Cash is the managing director of Sounds Alive, a producer of digital radios, which are sold worldwide.
The company produces these using flow production techniques. The work is designed using specialisation and
division of labour. Johnny's main focus at the moment is to improve the quality of the company's products.
There have been an increase in the number products being returned as faulty in the last few months and Johnny is
determined to sort this out. The business has a quality control department but Johnny wants to introduce a quality
assurance system. Johnny thinks the quality problems might be connected with the rapid growth of the company
in the last couple of years. Big orders from abroad mean he has expanded production significantly. He has used
many new suppliers, employed many new staff and there have been various problems getting the larger scale
production organised efficiently. While getting bigger has brought many advantages, there is no doubt it has also
caused some problems.
Evaluate whether Johnny should or should not introduce a "quality assurance system".
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